Intel’s scaling back CPU shipments for builders | Tech Industry

Why it matters: Intel’s 14nm CPU shortage continues. According to a new report, the company will be cutting processor shipments to the PC DIY distributor market by as many as two million units in the fourth quarter of this year, leading to a fall in motherboard shipments by Taiwanese firms.

With Intel having delayed mass production of it 10nm process until next year, and 14nm CPUs in short supply, a DigiTimes “industry source” claims the company has reduced shipments of desktop processors so it can increase capacity for notebook and server CPUs. Shipments of desktop processors are reportedly set to fall from an expected 8 million units to 6 million in Q4 2018.

Motherboard makers from Taiwan are feeling the effects of the CPU shortage. Tul and Gigabyte are both expected to see their revenues drop this quarter, while Asus is expected to see revenue stay flat QoQ, though its profits for the whole of 2018 are estimated to have fallen YoY. MSI, however, is likely to be unaffected, thanks to strong sales of its gaming motherboards and graphics cards.

Asus believes that the CPU shortages, especially those for desktops, will last until the second quarter of 2019.

Several other factors have contributed to declining revenues in the motherboard market. The continuing decrease in cryptomining, which has been in decline since around April, has seen mininggraphics cards and motherboard sales fall.

Nvidia latest RTX 2000-series has also taken some of the blame. Their low price/performance ratio compared to existing graphics cards has resulted in lower-than-expected sales of new motherboards.